​DEMI Consulting has been involved with CETA through the Brussels office for a number of years from inception to implementation. We have become familiar with the numerous and very different regulatory regimes in each of the EU countries. In addition we have developed connections that will be of benefit to Canadian firms interested in EU countries.

Large and medium size corporation have the financial capability and internal staff to move on the benefits of CETA. CETA just opens the door making it easier than before but all strategic growth procedures required as in domestic markets must be undertaken. In addition an understanding of local markets and regulatory regimes in the country you want to either sell to or buy from must be known otherwise the chances of success diminish and the costs increase reduces required returns.

Small business those under 100 staff and annual revenue under €10 million or C$15 million do not have the resources of large companies but there are significant benefits now available under CETA to obtain a market presence in EU countries. The challenge is how they do so with less cost, less risk and more return.

We have researched provincial and government web sites on CETA and find minimal or no resource on how to reap the benefits made available by CETA by small businesses. We checked out the funding available and Trade Commissioners support and they all fall short to address the needs of small business even to assess potential opportunities. In the EU the resources and funding support for small businesses is significantly more advantageous than Canada.

Our experience and our Canadian and EU networks along with our strategic growth competencies that are available to small Maritime businesses can allow them to assess EU country opportunities, develop a marketing strategy, find on the ground EU partners and penetrate the targeted market. We are here to assist in each stage of the process.

All businesses looking into operating outside of their own country must be aware of different cultures, methods of operation, banking and regulations from your home country. Small businesses require more upfront assessment of risk and opportunity because they do not have the human and financial resources to learn from their mistakes. It is usually one and done either success or failure.

Following are a number of factors that could be inhibiting small businesses but with support from knowledgeable resources in international trade, country uniqueness and funding avenues these challenges can be overcome and higher probability of success ensured. ​​

Country regulatory legislation may be different in each of the 27 EU member countries and these may be changed at the will of each country to the disadvantage of Canadian companies within or to enter their jurisdiction. From our assessment currently within CETA there is not dispute resolution so there would be no assistance from the Canadian government on regulations changes that harm Canadian companies or prevent them from doing business in the country. There are examples currently in the AgriFood and Seafood sectors as a result of a unilateral regulation change by individual EU countries. In these cases Canadian companies may not have assumed access to these counties markets.

For those that think government trade missions are the answer they may be if you have done your homework, lined up high probability buyers or partners and have agreements ready for signing. In many cases small businesses are looking singularly at the trade mission as an opportunity to obtain international business. If the homework has not been done as previously outlined and a budget for a return trip is not in place then the trade mission is an expensive vacation. Trade mission are good if it considered a place for a face to face to finalize a deal.

There are significant opportunities for small businesses to sell into EU countries leveraging CETA. CETA opens doors to opportunities that may have been closed previously due to tariffs. As we have stated before success requires doing the research and accessing the expertise to provide the process, the unique knowledge of the country targeted and access to business networks for on the ground support.

All businesses looking into operating outside of their own country must be aware of different cultures, methods of operation, banking and regulations from your home country. Small businesses require more upfront assessment of risk and opportunity because they do not have the human and financial resources to learn from their mistakes. It is usually one and done either success or failure.The feedback I have received by participants at CETA Business Forums put on by the Canadian Trade Commissioners Service is that participation by small businesses is slow. 98% of Canadian businesses fall under the small business definition of less than 100 staff and revenue under C$15 million. CETA appears to have been developed primarily for the other 2% being medium and large corporationFollowing are a number of factors that could be inhibiting small businesses but with support from knowledgeable resources in international trade, country uniqueness and funding avenues these challenges can be overcome and higher probability of success ensured.

One key item that must be highlighted is the cost in taking advantage of new trade deal like CETA. What is the cost in terms of manpower (i.e., senior management/owners time), airfare, hotels, daily expenses, in-country costs, trade show or networking event fees, cost of shipping goods, etc. …unless these costs are recovered in one year, or an immediate new sale, then small businesses are not inclined to do anything available under CETA. The current funding programs in federal or provincial governments are severely inadequate (50%) or less or nothing on some essentials. This area of providing incentives and funding to at least investigate opportunities must be modified. Perhaps 100% Government assistance on the first trip with verification that the required upfront work is completed.

The assisted from the Federal government to small businesses in obtaining free advice from Canada’s Trade Commissioners in a far off country is very expensive to access if you have to book fights and hotels chasing deals that may not come to pass for reasons beyond market considerations.​

There are significant opportunities for small businesses to sell into EU countries leveraging CETA. CETA opens doors to opportunities that may have been closed previously due to tariffs. As we have stated before success requires doing the research and accessing the expertise to provide the process, the unique knowledge of the country targeted and access to business networks for on the ground support.